What are the key management changes announced by ONEOK?

ONEOK announced the appointments of Pierce H. Norton II as Executive Vice President - Natural Gas and Terry K. Spencer as Executive Vice President - Natural Gas Liquids. Both individuals have been promoted to these senior executive roles within ONEOK, Inc. and ONEOK Partners GP, L.L.C.

What are the implications of the 'Termination Agreements' for investors?

The Termination Agreements provide severance packages to Mr. Norton and Mr. Spencer if their employment is terminated by ONEOK without 'just cause' or by them for 'good reason' within three years of a change in control. These packages include substantial financial benefits, which could represent a significant expense for the company if triggered. Investors should be aware of these potential liabilities.

Do Mr. Norton and Mr. Spencer have formal employment agreements?

No, the filing explicitly states that ONEOK does not have employment agreements with either Mr. Norton or Mr. Spencer. Their compensation and terms of employment are governed by these Termination Agreements in the event of specific employment separation scenarios.

What is the background of the newly appointed executives?

Pierce H. Norton II joined ONEOK in 2004 and has held leadership positions in subsidiaries like Bear Paw Energy and Crestone Energy Ventures, as well as leading the gathering and processing segment. Terry K. Spencer joined ONEOK in 2001 and has held various roles in natural gas liquids and gathering & processing, including President - Natural Gas Liquids.

OKE 8-K: Leadership Changes

Summary

ONEOK Inc. (OKE) filed an 8-K on July 27, 2007, to report significant changes in its senior management team, specifically within its natural gas and natural gas liquids divisions. Pierce H. Norton II was appointed Executive Vice President - Natural Gas, and Terry K. Spencer was appointed Executive Vice President - Natural Gas Liquids. Both individuals have extensive experience within ONEOK and its subsidiaries, with Mr. Norton having joined in 2004 and Mr. Spencer in 2001, holding various leadership roles related to gathering, processing, and natural gas liquids. These appointments reflect a strategic strengthening of leadership in key operational areas. An important disclosure for investors concerns the "Termination Agreements" in place for both Mr. Norton and Mr. Spencer. While not formal employment agreements, these agreements outline severance packages that would be triggered under specific circumstances, such as termination without "just cause" or resignation for "good reason" within three years following a change in control of ONEOK. The severance includes a lump sum payment based on a multiple of annual compensation, prorated short-term incentive, accelerated vesting of retirement benefits, and continued welfare benefits. Investors should monitor any future developments regarding a change in control, as these agreements could result in significant financial outflows for the company.

Key Highlights

1Appointment of Pierce H. Norton II as Executive Vice President - Natural Gas.
2Appointment of Terry K. Spencer as Executive Vice President - Natural Gas Liquids.
3Both appointed executives have significant prior experience within ONEOK and its affiliated partnerships.
4Mr. Norton's previous roles include leadership at Bear Paw Energy, Crestone Energy Ventures, and overseeing the gathering and processing segment.
5Mr. Spencer's prior experience includes leadership in natural gas liquids and gathering & processing segments.
6Disclosure of Termination Agreements for both executives, detailing severance terms upon termination without 'just cause' or for 'good reason' post-change in control.
7Severance provisions include lump sum payments, prorated incentives, accelerated vesting, and continued benefits.

ONEOK INC /NEW/ 8-K Report, Executive Changes (Jul 27, 2007)

Summary

Key Highlights

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